The Commercial Bank of Ethiopia announced reaching a 300 million US dollar credit arrangement with the Export-Import Bank of China. The money is to be used at the bank’s discretion said Yishak Mengesha, Chief Business Development Officer.

The details of the loan including interest rates are to be negotiated in the future according to Yishak.

The current loan of 300 million US dollars brings the total amount of money Ethiopia has borrowed from the Import-Export Bank of China to a total of 1.8 billion US dollars according to the Ministry of Foreign Affairs.

It is antcipated that money will be used to fund projects in Ethiopia’s five year Growth and Transformation Plan explained the Ministry. Ethiopia plans to invest an estimated 33 billion US dollars in industry and infrastructure in the next four years.

The EXIM is expected to the lend the Ethiopian government a further 98 million US dollars for the water supply project to be undertaken in Addis Ababa according to the Foreign Ministry.

Source: Bloomberg